Evaluation of large scale industrial development using real options analysis : a case study

Recently, real-option analysis has gained attention as an innovative valuation method for complex real estate projects. However, considering its potential, this method has not become as popular as it should have. One major reason may be its complexity, and perhaps, its effectiveness is not yet widely known in the industry. Accumulating high-quality case studies can help demonstrate the effectiveness of any theory. Case studies can also help standardize the application process, providing guidelines that help people use the model more easily. In addition, it can reveal and provide solutions for various types of properties, and the means to accommodate the specifics of real-world problems met while applying the model. This case study deals with a large-scale industrial development project, which is suitable for the application of the real-option model. Usually industrial developers obtain large sites and then develop them in a phased manner. This allows them the freedom to choose phase timing and to modify their initial building plans more freely than with other types of property development.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Architecture.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2006

Author dc:creator

• Ariizumi, Tatsuyuki

Advisor dc:contributor.advisor

• David Geltner.

• Architecture.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/37438
• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Identifier URI

http://dspace.mit.edu/handle/1721.1/37438

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/37438